A. Each franchisee shall file with the certificate of acceptance which it files pursuant to the provision of Section 5.28.440 of this chapter and at all times thereafter maintain in full force and effect at its sole expense, the following insurance:
1. General Liability. General liability insurance including, but not limited to, protection for claims of bodily injury and property damage liability, personal and advertising injury liability, and products and completed operations liability. Coverage shall be at least as broad as insurance services office commercial general liability coverage form GG 0001 (occurrence). The limits of liability shall be not less than:
a. Each occurrence, one million dollars ($1,000,000.00);
b. Personal and advertising injury, one million dollars ($1,000,000.00);
c. General aggregate, two million dollars ($2,000,000.00);
d. Products and complete operations aggregate, two million dollars ($2,000,000.00).
The policy shall cover contractual liability applicable to the franchisee's assumed liability under this contract.
2. Automobile Liability. Automobile liability insurance providing protection against claims of bodily injury and property damage arising out of ownership, operation, maintenance, or use of owned, hired, and nonowned automobiles. Coverage shall be at least as broad as insurance services office automobile liability coverage form CA 0001, symbol 1 (any auto). The limits of liability shall not be less than:
a. Bodily injury and property damage combined single limit, one million dollars ($1,000,000.00);
If general liability coverage, as required in subsection (A)(1) of this section, is provided by the commercial general liability form, the automobile liability policy shall include an endorsement providing automobile contractual liability.
3. Workers' Compensation. Workers' compensation insurance, with coverage as required by the state of California (unless the franchisee is a qualified self-insurer with the state of California), and employers liability coverage. The limits of employers liability shall not be less than:
a. Each accident, one million dollars ($1,000,000.00);
b. Disease each employee, one million dollars ($1,000,000.00);
c. Disease policy limit, one million dollars ($1,000,000.00).
4. Excess or Umbrella Liability. Excess or umbrella liability providing excess coverage at least as broad as the underlying coverage for general liability, automobile liability and employers liability with a limit of four million dollars ($4,000,000.00) per occurrence and in the aggregate.
B. The franchisee's general liability, automobile liability, and excess or umbrella liability policies, shall contain the following provisions:
1. The commission, its members, their officials, agents, employees, representatives and volunteers, shall be covered as additional insureds as respects liability arising out of the activities performed by or on behalf of the franchisee, products and completed operations of the franchisee, premises owned, occupied, or used by the franchisee, or automobiles owned, leased, hired, or borrowed by the franchisee. The policy shall contain no special limitation on the scope of coverage afforded to the commission, its members, their officials, agents, employees, representatives or volunteers.
2. The franchisee's insurance coverage shall be primary insurance as respects the commission, its members, their officials, agents, employees, representatives or volunteers. Any insurance or self-insurance maintained by the commission, its members, their officials, agents, employees, representatives or volunteers shall be excess of the franchisee's insurance and shall not contribute with it.
3. Any failure to comply with reporting or other provisions of the policies on the part of the franchisee, including breaches of warranties or unintentional misrepresentations, shall not affect coverage provided to the commission, its members, their officials, agents, employees, representatives or volunteers.
4. The franchisee's workers' compensation and employer's liability policies shall contain an endorsement that waives any rights or subrogation against the commission, its members, their officials, agents, employees, representatives or volunteers.
5. Each insurance policy shall state that coverage shall not be suspended, voided, canceled by either party, reduced in scope or in limits, nonrenewed, or materially changed unless the insurer provides thirty (30) days advance written notice by certified mail to the clerk of the board of directors of the Sacramento metropolitan cable television commission, 700 H Street, Room 2450, Sacramento, California, 95814, prior to such change. The insurer shall provide ten (10) days advance written notice by certified mail to the clerk of the board of directors of the Sacramento Metropolitan Cable Television Commission in the event of cancellation due to nonpayment of premium.
6. All of the franchisee's insurance coverage, except as noted below, shall be placed with insurance companies with a current A.M. Best's rating of at least A-:VII.
Exceptions:
a. Underwriters at Lloyd's of London;
b. Workers' compensation which is provided through a State Compensation Insurance Fund;
c. Franchisee's qualified workers' compensation self-insurance under California law.
7. The commission will accept Franchisee's self-insurance of its general or automobile liability risks only if the franchisee has a minimum net worth of at least ten million dollars ($10,000,000.00).
8. The franchisee shall furnish the commission with certificates of insurance, including copies of all endorsements specifically required hereunder, signed by a person authorized by the insurer to bind coverage on its behalf, as evidence of the coverage required by this section.
9. For unforeseen risks, the commission, at its discretion, may increase the amounts and types of insurance coverage required hereunder at any time during the term of the contract by giving written notice to the franchisee. Franchisee shall immediately procure such insurance or increase the amounts of insurance coverage, and provide certificates of insurance as required in subsection (B)(8) of this section.
10. The form and substance of the insurance required of the franchisee shall be subject to the approval of commission and the county of Sacramento risk manager. Any acceptance of insurance certificates by commission or the county of Sacramento risk manager shall in no way limit or relieve franchisee of franchisee's duties and responsibilities set forth in this chapter.
11. The failure of the commission to enforce in a timely manner any of the provisions of this section shall not act as a waiver to enforcement of any of these provisions at any time during the term of the franchise. (Ord. 97-076 § 3; prior code § 20.08.706)